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Copy 1 

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PROSPECTUS, REPORTS 


AND 


OTHER DOCUMENTS. 


i. $tefo fjorh : 

E. WELLS SACKETT, BOOK, JOB AND LAW PRINTER, 


Cor. William and Pine Stref.t. 
1871. 




320 


pFFICERS 


OF THE 


Pomp any. 


imilllMOT, 

MILTON COURTRIGHT. 


JOHN F. TRACY, 
SIDNEY DILLON. 
WM. A. THOMSON, 
O. S. CHAPMAN, 


DANIEL DREW, 
WM. L. SCOTT, 
JOHN ROSS, 
BENJ. F. HAM, 


MILTON COURTRIGHT. 



mimiT, 
NICOL KINGSMILL. 

vrkmmsi, 

M. H. TAYLOR. 



CROOKS, KINGSMILL & CATTANACH, 

Toronto, Canada. 


CHARLES TRACY, 

ISTew York City. 












. # 
























- «. 

* 






f , ' 


»■ i ) 

























































321 


PROSPECTUS 

OF THE 

CANADA SOUTHERN RAILWAY 

COMPANY. 


The object of the Canada Southern Railway 
is to form with other Roads a cheap line of 
traffic between Chicago and New York, so 
located and constructed as to reduce the cost 
of transporting the products of the Interior to 
the lowest limit. The line adopted by this 
Company with its connections will accomplish 
this result, being practically level and straight 
to tide water. All the Railways south of this 
line, from Chicago to the sea-board, pass over 
the Alleghany range of mountains ; the Erie 
at an elevation of 1,800 feet; the Pennsylvania 
at an elevation of 2,200 feet ; the Baltimore and 
Ohio at an elevation of 2,600 feet, and the Chesa- 
peake and Ohio at an elevation of 2,000 feet. 
Upon this route this great mountain range falls 
off into a plain only 420 feet above tide water, 
and 145 feet below the level of Lake Erie. 


322 


6 


ROUTE. 

The Canada Southern Railway is located 
through the southern tier of counties in the 
Province of Ontario, the most populous and 
fertile agricultural portion of the Dominion of 
Canada. 

Its eastern terminus is at the International 
Bridge, now being constructed over the Niagara 
River at Buffalo, and its western termini is on 
the Detroit River at Amherstburg, near its 
mouth, 229 miles from the International Bridge, 
and (by the branch) at Moore, on the St. Clair 
River, (opposite St. Clair in Michigan,) 183 miles 
from the Bridge. 

CONNECTIONS. 

Its eastern connections with the seaboard, 
will be by the existing New York Central and 
Erie Railways; the Midland Railway, and the 
Buffalo and Washington, and Pine Creek Rail- 
ways, now in the course of construction, which 
two last-mentioned, in connection with the 
Pennsylvania road, will furnish two additional 
lines to New York, and one to Philadelphia, 
Baltimore and Washington. 

Its western connections with Chicago, will 
be by the Michigan Southern, and the projected 
Canada Southern and Chicago Railways, from 
opposite Amherstburg, as well as by the Penin- 
sula and Midland, and the Michigan Air-Line 


7 


323 


Railways from St. Clair, both of which latter 
lines are now under construction. 

The Railways mentioned will make four dis- 
tinct lines from the eastern terminus of the 
Canada Southern to New York, and, with the 
Michigan Central, five distinct lines from its 
western termini to Chicago. The Canada South- 
ern will thus be a connecting link between great 
systems of roads, which can now supply to it, at 
either end, a traffic equal to its utmost capacity. 
To connect these important systems there are 
now but two existing roads, viz : the Lake 
Shore along the South shore of Lake Erie, and 
the Great Western of Canada, with its proposed 
“ Loop Line” from Glencoe to Canfield. 

The main line and its branch are located where 
the Detroit and St. Clair Rivers may be crossed 
to the best advantage, either by ferries or by 
bridging. Ferry-boats may be temporarily used, 
but public convenience will demand, as it has 
over the Mississippi, that bridges over them 
shall be built as soon as possible, with such 
provision as will prevent interference with 
navigation. 

ALIGNMENT AND GRADES. 

Annexed is the report of Mr. F. N. Finney, 
chief engineer, in which will be found in detail 
the lengths of the main line and the St. Clair 
branch, the proportion of the straight and 
curved lines, as well as of the grades and dis- 


tances between objective points, as compared 
with other lines. Also, the report of the Hon. 
Wm. J. Me Alpine, consulting engineer, who by 
his scientific knowledge and long practical ex- 
perience in the construction and management of 
some of our most important railways, and in his 
official connection with the railways and canals 
of the State of New York, has had a very 
extended and diversified knowledge of the trade 
and commerce of the country, and also of the 
cost of transport as affected by the difference 
of grades, alignment, etc., upon railways, and 
who has made and published many comprehen- 
sive reports upon these subjects. 

He has carefully examined the report of our 
chief engineer Mr. Finney, and presents the ad- 
vantages which this line possesses in regard to 
its position, grades and alignment. 

The length of road to be constructed is 289 
miles, of which 96 per cent, is straight, with no 
opposing grade exceeding 15 feet per mile, and 
that for only a short distance in any one place. 

The distance from the common railway center 
at Buffalo, by the main line, is 23 miles less to 
Toledo than by the Lake Shore, and to Adrian 
by the Canada Southern and Chicago Railway, 
is 48 miles less than by the Lake Shore. 

The distance by the main line and the Canada 
Southern and Chicago Railways to Chicago, is 
28 miles less than by the proposed “Loop Line" 
of the Great Western and the Michigan Cen- 


9 


325 


tral; 40 miles less than by the Lake Shore and 
Michigan Southern “ Air-Line,” and 50 miles 
less than by the “ Old Line ” of the Michigan 
Southern. 

The Canada Southern and Chicago Railway 
is the closing link between the western terminus 
of the main line of the Canada Southern Railway 
and Chicago. The maximum grade of the former, 
like that of the latter, is but fifteen feet to the 
mile, with an alignment nearly as favorable as 
that of the Canada Southern. 

None of the existing lines of railway between 
Chicago and New York, have been located and 
constructed with reference to cheap transporta- 
tion. The great and increasing traffic between 
these points, now demands a line of railway 
which will afford the cheapest transportation 
practicable. With a few changes in the existing 
lines of railway between Buffalo and New York, 
grades of not exceeding fifteen feet per mile 
and good alignment, can be obtained, which will 
make, in connection with the Canada Southern, 
and the Canada Southern and Chicago Railways, 
a line over almost a level plain, the entire dis- 
tance from Chicago to New York. 

No better evidence of the value of low 
grades can be given than that which is exem- 
plified by the experienced managers of the 
Pennsylvania Railway Company, who are now en- 
gaged in providing a low grade line for freight, 
between Pittsburgh and Harrisburgh, by which 


, 32-5 


10 


they will abandon 250 miles of their present 
main line for through freight traffic, although 
it will increase the length of the line to be run, 
62 miles, and involve the actual construction of 
1 10 miles of a new and expensive road. 

Another instance is that of the Hoosic Tunnel, 
where twelve millions of dollars will be ex- 
pended, mainly to reduce the grades between 
the Hudson and Connecticut Rivers, the distance 
to Boston being reduced only 1 miles. Similar 
changes in several of the Great Trunk Lines are 
in contemplation, all of which show that the 
attention of the most judicious minds of railway 
managers is earnestly directed to lessening the 
cost of transportation by reducing grades: 

None of the Railways between Chicago and 
New York, south of the Lakes, have a uni- 
form gauge. A gauge of four feet nine to four 
feet nine and a quarter inches, intervenes in all 
of them. The Canada Southern, with its con- 
nections east and west, will form a through line, 
relieved of this objectionable feature, having a 
uniform gauge of four feet eight and a half 
inches, (the prevailing gauge of the country,) 
over its entire length. 

Another important object to the northern 
roads connected with this line, will be effected 
by the construction of the Canada Southern. 
Heretofore the northern lines, when in close com- 
petition for traffic, or in a contest for speed, have 
been closely pressed by the more southerly 


11 


327 


lines ; this railway will change the position of 
these lines in that respect, in favor of the north- 
ern lines. 

The advantage which the Canada Southern 
possesses in the matter of routes and grades, 
and its importance to other lines cannot be 
better illustrated than by the discussions of 
the shareholders of the Great Western Rail- 
way Company, at a meeting held in London, 
England, in July last, called to consider the 
building of the “ Loop Line ” from Glencoe to 
Canfield, extracts of which will be found hereto 
appended. 

These gentlemen who expected to forestall 
the construction of the Canada Southern by 
building the “ Loop,” doubtless took an intelli- 
gent and comprehensive view of their position, 
as it was evident from the drift of their re- 
marks, that the construction of the “Loop,” 
was not deemed advisable for their interest as 
a project by itself, and was only urged to defeat 
the Canada Southern. 

The value and importance of the Canada 
Southern Line itself, and its necessity to the 
other great lines in which we were interested, 
alone controlled the question of its construc- 
tion. 

If the Great Western Railway Company were 
warranted, even in entertaining the idea of a 
“Loop Line,” parallel with their own railway, 
in consideration of procuring grades of thirty- 


12 


32 b 


five feet per mile, but by which they would 
gain nothing substantially in distance, while 
the business which it would get would be 
principally taken from their own main line, 
these other great interests, both east and west, 
would certainly be warranted in building the 
Canada Southern, by which they would save 
from forty to fifty miles in distance, and pro- 
cure grades of 15 feet, which are as much better 
than those of the “ Loop,” as the latter are 
superior to those of their own main line, while 
we will lose nothing by diversion. 

Chicago is not only a centering point for the 
railway lines from the eastward, but also of 
those extending to the westward. 

Of the railways diverging west from Chicago, 
one great interest is under the same controlling 
power that manages the Michigan Central. 
This management is now extended to the Great 
Western of Canada. 

To have left the monopoly of the traffic across 
the Peninsula of Ontario under that control 
alone, must have been regretted by every other 
interest both in and out of Canada. 

TRAFFIC. 

The managers of the Great Western, whose 
Railway passes through a country occupied 
very much like that of the Canada Southern, 
state that from 1865 to 1869, there was an in- 
crease in the value of their through traffic, from 


13 


329 


$500,000 to $1,200,000; a a steady, regular in- 
“ crease which is going on still, notwithstanding 
“the reduction of rates and fares between 1865 
“and 1869,” of one hundred and thirty-six per 
cent, in five years; or, an average of twenty- 
seven per cent, per annum. The gross traffic 
receipts for the half year ending 31st July, 
1870, were $2,044,500, of which the local traffic 
was 45 per cent, of the whole. 

Taking the first half of 1870 as a basis, the 
receipts for that year would be $4,000,000, of 
which, by the same proportion, $1,800,000 would 
be derived from the local, and $2,200,000 from 
the through business. 

Judging by the experience of the past, it will 
be fair to assume, that by the time the Canada 
Southern Railway is completed, (January 1st, 
1873,) the business of the Great Western will 
have increased at least 25 per cent., equal 
to an aggregate amount of local traffic of 
$2,250,000, and of through traffic of $2,750,000. 

On the opening of the Canada Southern, with 
its further development of the large agricul- 
tural products for export, as well as those from 
the lumber and mineral oil districts, which have 
heretofore been destitute of railway and other 
facilities of transport, an additional local busi- 
ness may reasonably be expected, of at least 25 
per cent., making for both roads $2,800,000, of 
which the Canada Southern, when fairly in opera- 
tion, will, it is estimated, secure at least two 


14 


Q «> 

fifths, or $1,120,000, with an increasing propor- 
tion every year thereafter in its favor. 

It may be added, that a considerable traffic 
will be derived from the existing branch rail- 
ways, from London, St. Catharines, and from the 
two roads which extend from the International 
Bridge, through Niagara Falls to Lake Ontario, 
where they connect with the steamers running 
through the Lake and the St. Lawrence to 
Quebec, and to all of the important interme- 
diate places ; and also from the projected branch 
to Hamilton, which will give a direct line to 
Toronto. 

A large through traffic over the Canada South- 
ern, will be derived from the central and northern 
portions of Michigan, tributary to the St. Clair 
branch. The rich and thickly populated agri- 
cultural regions of central Michigan, together 
with the vast quantity of pine from the northern 
portion of the State, (already penetrated by 
railways,) can find no outlet to an eastern 
market so advantageous as over the St. Clair 
branch. 

The following extract taken from the Report 
of the Convention, held at Saginaw, in 1869, of 
the friends of a line to connect with the North- 
ern Pacific Railroad, from the St. Clair River 
via the Straits of Mackinaw, will show the 
value of the products of the Northern portion 
of Michigan which will be tributary to the 
Canada Southern Railway : 


15 


331 


Copper and Iron from Lake Superior, . $8,900,000 
Lumber, Timber, Shingles, Lath, Staves, 

etc., 28,534,294 

Salt, 1,111,380 

Fish, 651,000 

Plaster, 144,090 


Total, $39,340,764 


In addition to this, the St. Clair branch will 
obtain from the Peninsula and Midland, and the 
Michigan Air-line Railways, not only the through 
business which those lines will derive from 
Chicago, but also their own local business, and 
very much of that which will be carried by the 
other lines, which they will intercept, and to 
which this branch can offer a shorter and cheaper 
line eastward, than can be obtained by any other. 

From these sources, it is believed there will 
be derived an amount equal to that above 
estimated for the local traffic in Canada, or 
$ 1 , 120 , 000 . 

From the main line via Amherstburg, there 
is the existing Michigan Southern, and the ex- 
tension of our line to Chicago by the projected 
Canada Southern and Chicago Railway. 

From the local business of these important 
lines, the through traffic from Chicago, and from 
lines west of Chicago, an amount equal to that 
now derived by the Great Western from the 
Michigan Central, (increased by the twenty-five 
per cent, before stated,) viz., $2,750,000, may 


16 


o *> v > 

Of) - 

certainly be relied upon, as soon as the facilities 
for transportation are afforded. This amount, 
together with the estimated local business 
of Canada, $1,120,000, and the through 
traffic from Central and Northern Michigan, 
$1,120,000, gives an aggregate of $5,000,000. 

The best idea of the through business which 
the Canada Southern Railway may expect can 
be derived from a statement of the immense 
area, population, wealth, resources and progress 
of the States lying west of its western termini. 
These States are Michigan, Indiana, Illinois, 
Missouri, Kansas, Nebraska, Iowa, Wisconsin 
and Minnesota. They contain an area of 560,793 
square miles, and had a population in 1870, of 
10,280,371. The following statement will show 
the area of each State, the population, and the 
number of miles of railway in each, in 1860 
and 1870. 


Michigan. _ 

Area, 

Square Mile. 

. 56,451 

Population, 

1860. 

749,113 

Population, 

1870. 

1,184,296 

Miles of 
R.R. 1860. 

779 

Miles of 
R.R. 1870. 

1,733 

Indiana 

. 33,809 

1,350,428 

1,673,046 

2,163 

3,177 

Illinois 

. 55,400 

1.711,951 

2,539,678 

2,799 

4,823 

Missouri . . 

. 65,350 

1,182,012 

1,715,000 

817 

2,040 

Kansas 

.. 81,310 

107,206 

362,871 



1,401 

Nebraska. _ 

. 75,995 

28,841 

123,000 



578 

Iowa... 

. 55,036 

694,913 

1,191,802 

655 

2,550 

Minnesota _ 

. 83,521 

172.023 

435,511 



972 

Wisconsin . 

.. 53,921 

775,881 

1,055,167 

905 

1,350 


560,793 

6,772,368 

10,280,371 

8,118 

18,624 


The population of these States increased in 
the period of 10 years, 3,508,003, over 50 per 


17 


3,33 


cent. The railroad mileage in the same time 
increased 10,506 miles, or nearly 130 per cent. 
At a similar rate of increase, these States will 
have in ten years from this time, 15,000,000 
inhabitants, and 40,000 miles of railway. But 
this is by no means all. New States are speedily 
to be formed out of Territories already contain- 
ing large populations, while the railroad across 
the continent is soon to bring to all the eastern 
lines an immense traffic from the interior and 
from the Pacific Coast. With that of the Ter- 
ritories, the increase of population in the West 
cannot be less than 600,000 annually. The 
yearly increase alone is adequate to the sup- 
port of a first-class road to bear their products 
to market. 

The States named in the preceding table pro- 
duced last year 400,000,000 bushels of corn, and 
150,000,000 bushels of wheat. The tonnage of 
this vast quantity exceeds 18,000,000 tons. But 
this tonnage, great as it is, is but a tithe of 
what will be produced with their increased 
population and under the stimulus of cheap 
transportation. The transportation of stock, 
and animal food of various kinds, constitutes a 
larger source of income of our through lines 
than that of grain. This kind of traffic is 
increasing much more rapidly than any other. 
The Eastern States are becoming more de- 
pendent every year upon the far West for 
their supply of animal food. Stock can be 


18 


33-4 

raised and transported at a profit far beyond 
the profitable limit for grains on account of 
the great value of the former. 

But the rapid increase of the tonnage of our 
railroads is much more wonderful than the 
increase in production. 

The tonnage in 1869 of the five great roads 
coming into Chicago from the West; the 
Chicago and North Western, the Chicago and 
Rock Island, the Chicago, Burlington and 
Quincy, the Chicago and Alton, and the Illinois 
Central, amounted to 6,767,209 tons. In 1860 
the tonnage of these roads did not exceed 
1,500,000. The increase in 10 years equaled 
5,267,209 or 350 per cent., or an average in- 
crease of 35 per cent., yearly. 

The tonnage of the three great lines from 
the West terminating on the sea-board; the 
New York Central, the Erie, and the Pennsyl- 
vania Railroads, increased from 1859 to 1869, 
a period of ten years, from 2,873,631 tons to 
12,997,089 tons, or an average of 35 per cent., 
annually. While this percentage cannot be 
maintained the actual annual increase will be 
much greater. 

The following statement will show the ton- 
nage of the five roads entering Chicago from 
the West, for a period of five years, ending* 
with 1869. 


19 



Illinois Cen- 
tral. 

Chicago and 
Alton. 

Chicago, Rock 
Island and 
Pacific. 

Chicago, Bur- 
lington and 
Quincy. 

Chicago and 
North West- 

1865. 

1,022,024 

386,197 

441,510 

809,674 

956,684 

1866. 

1,034,946 

511,012 

472,557 

737,511 

1,137,515 

1867. 

1,153,175 

636,360 

459,986 

821,883 

1,726,919 

1868. 

1,439,675 

■ 915,682 

654,435 

937,489 

1,982,429 

1869. 

1,601,972 

1,076,678 

846,887 

1,029,746 

2,211,826 


Such rates of increase show how much more 
rapidly the products and wealth of the country 
increase than its population. Such evidence 
as this, drawn from the reports of railroad com- 
panies, show the absolute necessity of constantly 
increased provision for transporting the pro- 
ducts of the interior to the sea-board, and that 
no provision that is likely to be made will equal 
the demand. 

While the progress of railroads has been so 
rapid in the West, no great independent outlets 
have been opened for them to the eastern mar- 
ket during the last 10 years. 

Mr. E. H. Walker, Statistician for the New 
York Produce Exchange, has kindly furnished 
the annexed interesting official statement, show- 
ing the average annual cost of transportation 
of wheat and corn by water, from Chicago to 
New Y ork, including handling and other charges, 
for the past fourteen years. This has been in 
round numbers, 28 cents per bushel for wheat, 
both by Oswego and Buffalo, and for the year 
1870, was 22 cents per bushel. Corn being car- 
ried at about the same rate for the same weight. 

The toll on the Erie Canal for the last year 
was 3 cents per bushel with freight exception- 


20 



ably low. If the Erie Canal is ever made free 
from toll, it will only reduce the cost of trans- 
portation by water to this extent. This is the 
only reduction possible, short of an enlargement 
of the canal. 

Mr. McAlpine demonstrates that by a low 
grade line, grain can be carried from Chicago 
to New York for from 20 to 22 cents per bushel 
of 60 pounds, taking as a basis, the roads with 
iron rails, and with a road-bed as ordinarily 
used. 

With a perfect road-bed and steel rails, a 
saving of 15 per cent, as compared with his 
estimate, may be assumed. 

The practice of purchasing grain at the sta- 
tions upon the roads west of Chicago, is in- 
creasing among grain dealers. This saves all 
charges at Chicago and Buffalo. These transfers 
and other charges cannot be avoided if brought 
by water. 

Another consideration of no small importance, 
is the shorter time of transit and the better con- 
dition in which the grain reaches market. 

A freight train, of 40 cars with 14,000 bushels 
of wheat, which can always be relied upon, 
from Chicago to New York, (9S0 miles,) over 
a railway with a good road-bed, steel rails, 
and with grades not exceeding 15 feet per mile, 
and a return with one-fourth (100 tons) the 
weight, (which is about the proportion of back 
freight,) can be taken at a cost of not to 


21 ' 

exceed $1.00 per mile run, or for 1,860 
miles, $1,860 

Terminal, and other charges, . . . 468 

Total, .... $2,328 

This includes the cost of working 
and maintaining the railway and 
equipment, together with every 
other expense, except interest on 
capital. 

14,000 bushels of wheat at 17 
cts. per bushel, is . . . $2,380 

100 tons mixed freight 
back, at 75 cents per hun- 
dred, is 1,500 

3,880 

Leaving a net profit of $1,552 

or 40 per cent, upon the gross earnings. 

A 32-ton locomotive will transport over such 
a road 60 cars, with 21,000 bushels of wheat, 
with a return freight of one-quarter the above 
(say 150 tons), at a cost of $1.25 per mile run ; 
this would reduce the cost of transporting the 
wheat to 14 cents per bushel, and the back 
freight to 60 cents per hundred. 

The traffic of existing railroads has been 
constantly gaining over water routes, between 
Chicago and New York. The reduction in cost 
that can be made on this line will not only add 
to its tonnage from ordinary sources, but enable 


CO 


22 




it to draw to an unlimited extent upon that 
which has heretofore gone by water. 

Oyer such a railway as has been described, 
and which is entirely practicable, produce from 
Chicago and stations west, can certainly be 
transported cheaper than by any existing 
water communication, and it is believed, 
cheaper than by any improved, or enlarged 
navigation practicable. 

The receipts of the Lake Shore and Michigan 
Southern Railway in 1870, were over $13,000,- 
000. In January of this year, the increased 
receipts, as compared with those of the same 
month last year, were $150,000, and but for the 
want of capacity to do the business offered, 
would have been greater. Twenty-five thou- 
sand cars passed over the road between Buffalo 
and Cleveland last month. If more facilities are 
necessary now to relieve this blockade, it will be 
imperatively necessary, upon the completion of 
the additional railways, now in course of con- 
struction from the Detroit and St. Clair Rivers 
west, and from Buffalo east. 

The Canada Southern will have less than half 
the capital of the Great W estern with its “ Loop,” 
and but half the capital, which belongs to that 
portion of the Lake Shore Railway, which is 
within a corresponding distance from Chicago. 
With the advantages of distance, grades and 
alignment largely in its favo’r, it wdll start off 
with a steel rail, and new equipment of the most 


approved modern kind, whilst the Lake Shore 
and Great Western Railways, to avail of similar 
track and equipment, must add as much to their 
capital, as will nearly double track the Canada 
Southern. 

The low grades and perfect alignment of the 
Canada Southern Railway will admit transpor- 
tation of passengers at the highest speed, and 
under the conditions of the most perfect safety. 
It will have the same economical advantages in 
the transportation of passengers as it will have 
in that of freight. 

With its ability for cheap transportation, and 
all its other advantages combined, it is difficult 
to estimate the traffic which must necessarily 
pass over the Canada Southern Railway, the 
most favorable link in that line of transit, over 
which so important a portion of the business of 
the continent naturally passes. 

ASSETS. 


Capital stock, $10,000,000 

Capital stock subscribed, 2,000,000 

Leaving unsubscribed, ... $8,000,000 

First mortgage, 7 per cent, sinking fund 

bonds, 9,000,000 

Bonus from municipalities, obtained and 

pledged, 500,000 


24 


34 $ 


The cost of the Railway, equipment 


and appurtenances complete, as esti- 
mated by the Chief Engineer, is . . $14,500,000 

To this must be added for commissions, 
office and legal expenses, and contin- 
gencies, 1,500,000 

Total, $16,000,000 


The subscribers to the $2,000,000 capital 
stock are offered the option, and propose to 
take six millions of additional stock, the bonus, 
the avails of the $2,000,000 subscription, and 
$8,000,000 of bonds, and furnish the necessary 
means to carry out the undertaking. 

This will leave two millions of the stock and 
one million of the bonds in the hands of the 
Company. 


The estimated annual gross receipts from 

traffic, as heretofore stated, are . . $5,000,000 

The working expenses should not exceed 
55 per cent, of the gross earnings, even 
at the minimum rates, or ... . 2,750,000 


Leaving of net revenue, . . . $2,250,000 

The annual interest on the Bonds is 
$630,000, and the contributions to the 
Sinking fund $82,000 ; this provides 
for the payment of the interest and 
debt at maturity. Making .... 712,000 


Leaving, net, $1,538,000 

which is equal to 19 per cent, on $8,000,000 of stock. 


25 


341 


It is the design of the Company to have the 
Railway completed, equipped, and ready for 
operation, by the 1st of January, 1872. 

The line is all located, the right of way is 
being procured, all of the bridging upon the 
road, and most of the ties required are under 
contract, and under way, together with that 
portion of the grading, which requires any great 
length of time to complete. The balance of the 
grading will be commenced as soon as the winter 
is over. 

A copy of the Bond and Mortgage is hereto 
appended. 

For the Board, 

M. COURTRICtHT, 

Prest. 


New York, Feb’y 15, 1871. 




























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342 


REPORT OP CHIEF ENGINEER. 

: M#M 

To the President and Directors of the Canada 
Southern Railway Company : 

Gentlemen: Your road is now permanently located. 
A line has been obtained with grades not exceeding 
15 feet to the mile, and 3 degree curves, being within 
the limits of my instructions. The distance from the 
west end of the International Bridge, (over the Niagara 
River at Buffalo,) to Amherstburg, (on the Detroit 
River, and near its mouth,) is 228.78 miles. 

The St. Clair Branch, from the point of its diverg- 
ence from the main line, (near St. Thomas,) to Moore, 
(on the St. Clair River, opposite St. Clair, Michigan,) 
is 59.82 miles ; and from the International Bridge to 
Moore, the distance is 182.59 miles. 

The alignment of the main line, from the Interna- 
tional Bridge to Amherstburg, is as follows : 

Straight line.. 218.71 miles. 

Curves 3° 0.95 miles 

“ 2 ° 2.00 4 ‘ 

“ 1° 4.72 “ 

44 i° 2.40 44 

10.07 44 

Making the total length of the main line 228.78 miles. 

The alignment of the St. Clair-Branch is as 
follows : 

Length of straight line 59.10 miles 

44 44 curves 2° 0.72 44 

59.82 44 


Making the total length of the main line and 

branch 288.60 miles. 


343 


28 


The total length of straight line, (on the main 


line and branch,) is._ __ 277.81 miles. 

The total length of curvature 10.79 <c 


288.60 miles. 


The principal tangents on the main line are, one of 
17.34, one of 28, one of 51.18, and one of 52.15 miles, 
and on the St. Clair branch one of 12 and one of 33 
miles. 


The length of the different gradients on the main line 
are as follows : 


Level and under 5 feet per mile 121.15 miles. 

Going East, ascending 5 to 10 feet per mile 14.35 “ 


“ “ “ 10 to 15 “ “ 

“ “ “ of 15 “ . “ 

Going West, ascending 5 to 10 a “ 
“ “ “ 10 to 15 “ “ 

“ « « of 15 « u 


“ 19.80 “ 

“ 14.83 “ 

“ .... 21.77 “ 

“ 6.67 “ 

“ 30.21 “ 


And on the St. Clair branch : 


228.78 miles. 


Level, and under 5 feet per mile___ 40.02 miles. 

Going East, ascending 5 to 10 feetpermile 5.25 “ 

“ “ “ 10 to 15 “ “ “ 3.31 « 

w “ “ of 15 “ « « 4.47 “ 

Going West, ascending 10 to 15 “ u “ 0.85 u 

“ u “ of 15 « « “ 5.92 « 


59.82 miles. 


Of the 15 feet grades, there are 14.83 miles encoun- 
tered on the main line going east, and 30.21 miles go- 
ing west ; the greatest length of which, however, in 
any one place, going east, is 2.55 miles, and going 
west is 3.48 miles. 


29 


344 


A line was run from a point near Sandwich, on the 
Detroit River, (opposite Detroit, Michigan,) for a dis- 
tance of 15.2 miles, to the main line. It is nearly level 
and can be cheaply built. But as Detroit can be 
reached via the St. Clair Branch, with less distance 
and equally favorable grades, and to better advantage 
than by the way of Sandwich, it will probably be 
deemed inexpedient to build the road to Sandwich, at 
least for the present. 

The distance from the terminus of the St. Clair 
branch, at Moore, across the river to St. Clair, is 2,660 
feet, or 0.5 miles, with a depth of water from 20 to 33 
feet, with the exception of the main channel, which is 
500 or 600 feet in width, with a depth of water aver- 
aging 43 feet, and a maximum of 45 feet, with a hard 
blue clay on the bottom, for the whole width of the 
river. This crossing is favorable, not only for a per- 
manent bridge, but also for a temporary ferry, and is 
unobstructed by ice during the winter. 

The distance from the terminus of the main line at 
Amherstburg, across the river to the Lake Shore and 
Michigan Southern Railway, (1.5 miles south of Tren- 
ton,) is 4.49 miles. The eastern, or main channel of 
the river, is nearly 6,000 feet in width, of which two- 
thirds has an average depth of 8 feet, and the remainder 
of 20 feet, with an extreme depth of 22 feet, and a 
rock bottom throughout. 

There is one other comparatively unimportant chan- 
nel to bridge, on the Michigan side of the river, 
nearly 2,000 feet in width, where the average depth 
does not exceed 12 feet. The western channel, 
and also a part of the main channel, can readily be 
bridged, leaving a ferry of only 2,500 feet. This 


30 



crossing is also favorable for a ferry, being unob- 
structed by ice during the winter. 

The crossings, both at Amherstburg and St. Clair, 
are favorable for bridging and would be entirely 
unobjectionable on the ground of interfering with the 
navigation, if provided with suitable draws. 

The distances between the objective points are as 
follows : 

1st. Between Buffalo and Toledo, via the main line to the 
Detroit Branch of the Lake Shore and Michigan Southern 
Railway (1.5 miles south of Trenton,) to wit : 


The International Bridge over the Niagara 

River 0.67 miles. 

From the International Bridge to Amherst- 
burg 228.78 “ 

From Amherstburg to the intersection of the 
Detroit Branch of the Lake Shore and Michi- 
gan Southern Railway, including the bridging 

over the Detroit River 4.49 “ 

From the intersection of the Lake Shore and 
Michigan Southern Railway to Toledo 37.50 “ 


Total distance from Buffalo to Toledo 271.44 miles. 


In estimating the distance from the point where our 
line would intersect the Detroit Branch of the L. S. 
and M. S. Railway to Toledo, I do not calculate the 
distance to the depot in Toledo, but to a point where 
the roads leading into Toledo would naturally intersect, 
and which would add nothing to their length. 

2d. From Buffalo via the St. Clair Branch to Detroit: 


Buffalo to St. Clair 183.76 miles. 

St. Clair to Detroit via New Baltimore 43.24 “ 


227.00 miles. 


31 


346 


In calculating tlie distance from St. Clair to Detroit, 
it is not taken to the river, but to the point of inter- 
section with the Detroit and Milwaukee R. R. and the De- 
troit Branch of the Lake Shore and Michigan Southern 
Railway, and which is convenient for the business of 
Detroit, and at the same time avoids the long circuit 
into and out of the city and saves a number of miles 
of distance in passing on to Chicago, by any of the 
roads leading to the latter. An independent line from 
St. Clair to Detroit, skirting Anchor Bay, would some- 
what shorten the distance, and pass more centrally 
through the City of Detroit, with no increase of distance 
to Chicago. 

The maximum grades on the proposed “Loop Line” 
are 35 feet to the mile, and with greater curvature 
than on the Canada Southern Railway. 

In justice to the Chief Engineer of the G. W. Loop 
Line and his associates, it is proper to say, that these 
grades and this curvature were unavoidable ; as, by 
the act of Parliament, granting the right to build the 
road, they were obliged to locate it through the differ- 
ent villages along the route. 

The maximum grades on the Grand Trunk Railway, 
between the International Bridge and Canfield, over 
which it. is proposed to pass the traffic of the “ Loop 
Line,” are at least as great as those of the “ Loop.” 

The distances from Buffalo to Chicago, (the principal 
objective point,) starting from the natural point of in- 
tersection with the New York Central, the Erie and 
other railways at Buffalo, (viz: 3 1 miles east of the 
Buffalo depot, and 5 miles from the west end of 
the International bridge,) are as follows : 


1st. By the Canada Southern main line, and the 

proposed Canada Southern and Chicago miles. 

Railways, is’. 492 

2d. By the Canada Southern, and the Canada 
Southern and Chicago Railways to Adrian, 

and the Michigan Southern, 494 

3d. By the St. Clair branch of the Canada South- 
ern, and the Michigan Air-Line Railways, 497 
4th. By the St. Clair branch of the Canada South- 
ern, the Michigan Midland and the Penin- 
sula Railways, 505 

5th. By the Grand Trunk, the Great Western 
and its “Loop Line” and the Michigan 

Central Railways, 520 

6th. By the existing line of the Great Western 
and the Michigan Central Railways, start- 
ing at an equal distance with the other 

lines from Rochester, 526 

7 th. By the Lake Shore and Michigan Southern 

Railways, via the Goshen branch, . . . 532 

8th. By the Lake Shore and Michigan Southern 

via the old line, 542 

The distance from the intersection at Buffalo, by 

the Lake Shore Railway, to Toledo, is . 299 

By the Canada Southern and the Detroit branch 

of the Lake Shore to Toledo, is . . . 276 

St. Clair, in Michigan, is the same distance from 
Buffalo, by the Canada Southern,- as Cleveland is by the 
Lake Shore ; and Lansing, (the capital of the State of 
Michigan,) is the same distance from Buffalo as Toledo. 

In addition to the low grades which have been es- 
tablished upon the Canada Southern Railway, and 


34 


33 

the slight curvature, other essential advantages have 
been gained, which add to the safety and value of the 
road, viz : 

First . — There are no curves on the road, which do 
not have tangents of at least 1,000 feet between them, 
thereby allowing trains of the usual length to straighten, 
before entering upon another curve. 

Second . — Every bridge upon the road, is approached 
by a tangent of not less than 1,000 feet in length, and 
in nearly all cases of much greater length. This is a 
very essential feature, as it lessens the strain on the 
structures, and reduces the liability of engines, or cars 
to leave the track, on or near the bridges. 

Third .- — The maximum grades are confined to the 
tangents. Curvature and grades seldom occur at the 
same place, and never where the resistance of the two 
combined, exceeds the effect of a grade of 15 feet per 
mile on a straight line. 

Fourth . — The aggregate length of permanent bridges 
will not ultimately exceed 1,300 feet, or one-fourth of 
a mile, for the entire length of the main line and 
branch. 

The working divisions of your road are determined 
by the location, and are very favorable for working it 
economically ; that is, St. Thomas being central on 
the main line and also at the eastern terminus of the 
St. Clair branch, by locating the main shops for con- 
struction and repairs at St. Thomas, every locomotive 
making regular trips over the road, either on the 
Eastern, Western, or St. Clair Divisions, will neces- 
sarily come to these shops every twenty-four hours, 


34 


and all cars passing over the main line or branch, 
will also be here examined and repaired if required. 

Locomotives would easily make the trip over the 
Eastern and Western divisions daily, and a round trip 
each day on the St. Clair division, thereby econom- 
izing power to the greatest degree. Small shops in 
connection with the required engine houses at each 
end of the main line, and at Moore, would be the 
only shops in addition to the main one at St. Thomas, 
that would be required. 

My estimate of the entire cost of the road, with a 
suitable allowance for contingencies and superintend- 
ence, (heretofore submitted in detail,) amounts to 
$14,500,000. In this estimate is included, 1st: The 
cost of the right of way 90 feet in width, as provided 
for in the Railway Act, together with the extra widths 
that may be required for deep cuttings, or high em- 
bankments, and all the necessary grounds for railway 
purposes, land damages, and the clearing and fencing 
of the line. 2d : The graduation of the road-bed to 
the width required for a first-class road. 3d : Pro- 
viding for the best quality of Bessemer steel rails, 
weighing 60 lbs. to the yard, on the main line, and 
on the sidings, the best quality of iron rails of the 
same weight per yard. The rails will be laid upon 
cross-ties, 26 inches from center to center, with splice 
or fish joints and iron chairs, and with 12 inches of bal- 
last beneath the ties. 4th : Providing sufficient equip- 
ment, and of the best character ; the necessary depots, 
wood and water stations, shops and machinery, docks, 
ferry boats, and all the other appointments needed for. 
a first-class railway. 

The favorable grades and alignment which have 
been obtained, have increased the cost, and together 


35 


350 


with the thorough construction, equipment, and ap- 
pointments necessary for the performance of the large 
business anticipated, have raised the estimate to the 
amount above named. But the additional cost of pro- 
curing the low grades and favorable alignment which 
has been adopted, I deem a wise expenditure, as it 
will so increase the capacity of the road and lessen 
the operating expenses, that 50 per cent, of the gross 
earnings, will be ample to operate and maintain the 
road, estimating the charges for carrying passengers 
and freight at the lowest rates. 

Respectfully submitted, 

F. N. FINNEY, 

Chief Engineer . 


Fort Erie, Ontario, Feb. 15, 1871. 






































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351 . 


REPORT OF CONSULTING ENGINEER'. 


New York, February 15th, 1871. 

To The President and Directors of the Canada 
Southern Railway Company : 

Gentlemen : You have requested me to examine the 
report of Mr. F. N. Finney, your Chief Engineer, who 
has made instrumental examinations of the peninsula 
of Ontario, for the purpose of obtaining the best loca- 
tion for your proposed railway, between the Interna- 
tional Bridge at Buffalo and the Detroit and St. Clair 
Rivers. 

From this full report and the map and profiles pre- 
pared by Mr. Finney, I derive the following general 
facts : 

The length of the main line is 229 miles, and of the 
Branch is 60, making 289 miles. 

Mr. Finney’s maps, profiles and report, show that 
this is not only the shortest line between the objective 
points, but also forms a necessary link between the 
main trunk lines west of the Detroit and St. Clair 
Rivers, and those east of the Niagara River, and fur- 
nishes much- the shortest route between the West and 
East, and at the same time secures grades of not, in 
any place, exceeding fifteen feet per mile. 


38 


I have a personal knowledge of a considerable por- 
tion of the country, over which your railway will be 
built, which enables me to confirm, (if it was neces- 
sary,) many of the particulars in the report of Mr. 
Finney. 

' The line of the road passes through a well-settled 
country, which will immediately contribute a consid- 
erable local business, which will annually increase, 
sufficient in itself, to warrant the construction of the 
road. 

The largest contribution of through business to the 
Great Western, is from the Michigan Central, which 
will have a shorter and cheaper route to the Atlantic 
markets, by your line, hence it will undoubtedly avail 
of these advantages and probably turn over to your 
road a considerable amount of business, which, by the 
existing circumstances, it is now compelled to send 
over the Great Western. 

It must also be considered, that the trunk lines of 
railway, west of the line of the Detroit River, are now 
dependent for their connections with the great trunk 
lines eastward of the Niagara River, upon a single line 
of railway, through the southern Peninsula of Ontario, 
which at any time, (as has often happened,) may exact 
the rates which a monopoly demands, or be compelled 
to take the only alternative, of forcing the traffic over 
the (south) Lake Shore line, which is more than forty 
miles longer. 

As some of the managers of the Great Western 
Railway, have suggested the construction of a “ Loop 
Line ” between Glencoe and Canfield, with the avowed 
object of preventing the construction of the Canada 
Southern, it is important to your Company, to care- 
fully examine the reasons urged for the “ Loop/’ and 


39 


3 53 


how far it would affect your interests, as well as those 
of the Great Western, if it should ever be built. 

The suggested “Loop” would start 80 miles from 
the eastern end, and 149 miles from the western* end 
of the Great Western, and would be 103 miles long, 
and attain its connection with Buffalo, over 46 miles 
of a branch of the Grand Trunk, and the Interna- 
tional Bridge. 

The saving in distance on the through business, 
to New York, which this “Loop” will effect over its 
present line, would be but six miles. 

The maximum eastward grades over the Great 
W estern, are 55 feet per mile, those over the suggested 
“Loop” are 35 feet, and those over the used portion 
of the Grand Trunk, but little more. It is admitted 
that the alignment and grades over the combined route 
are more favorable than over the main line,* but they 
are also as much inferior to those of the . Canada 
Southern, as they are superior to those of its own main 
line. 

The cost of the 103 miles of this Glencoe “ Loop ” 
would be at least five millions of dollars. 

In the face of these circumstances, the Great Western 
propose as follows : 

1st. To abandon 149 miles of the main line en- 
tirely, so far as through traffic, which is one-half of 
their whole business, is concerned ; 

2d. To build a road rival to itself, which will cut 
off a portion of the remaining rural local business, on 
that 149 miles of the main line ; 

3d. To give to a rival Company (the Grand Trunk) 
twenty per cent, of all of the diverted, through and 


local business, which diversion together is about three- 
fourths of the whole gross earnings ; And : 

4th. To leave the local business subject to the ex- 
isting inconvenience and expense due to the higher 
grades and less direct route of the main line. 

If I was called upon to professionally advise the 
Great Western Company, I would recommend them 
to reduce certain of their grades eastward, as low as 
the nature of the country would admit ; and, if they 
should ever ftnd it advisable to build a loop-line to 
Buffalo, to start it from a point on their main line, 
nearest to the Niagara Bridge, where eastward grades, 
in the direction of the greatest tonnage, can be found ; 
or, in other words, to make as small a diversion of 
mileage from the main line, by the “ Loop,” as the na- 
ture of the country will admit. By this arrangement 
it will receive as much through traffic as by the “ Loop,” 
and will also obtain all of the advantages of the im- 
provements on the main line, for the benefit of the 
local business, (which is one-half of the whole,) and will 
save the expense of the maintenance and operation of 
an additional 103 miles of railroad, and the interest on 
its cost. The distance through to New York is sub- 
stantially the same by the main line, as by the suggested 
“ Loop.” 

A sum insignificant as compared with the cost of 
the “ Loop,” expended on the main line, would ren- 
der its grades as effective as those of the “ Loop.” The 
tonnage going west does not exceed one-fourth of that 
going east, and therefore, a less sum would be re- 
quired to be expended upon the improvement of the 
grades in that direction. 


41 


355 


This advice is not proffered to that Company, but 
the suggestion is made to further illustrate the position, 
that the construction of the “Loop ” cannot be seriously 
entertained by the stockholders of that Company. 

Your line has an advantage in its favor in regard to 
distance alone, to the principal objective point, of 
from 28 to 50 miles. 

There is, however, a more important question to be 
considered between your line and that of any existing 
one, or any that can be built, being that of its superior 
advantages of grades and alignment. 

It is somewhat difficult to state the moneyed value of 
the latter, as in it is involved the questions of safety, 
speed and operating expenses ; but the report of Mr. 
Finney shows some facts which deserve more partic- 
ular mention, and which do not, I believe, occur upon 
any railway on this continent. 

The whole distance is on straight lines, except four 
per cent. Two tangents, each of 51 miles in length, are 
united by a short curve of one degree. 

What is also remarkable, is that these extraordinarily 
long tangents are upon almost level grades, and that 
the maxima never exceed 15 feet per mile, and these 
for short distances of only one to three miles. It is 
the shortest posssible line that can be found across 
this Peninsula of Ontario, between the Niagara and 
the Detroit or St. Clair Rivers. 

In regard to grades, the rule may be assumed, as suffi- 
ciently accurate for this comparison, that one of twenty 
feet per mile, lessens the cargo tonnage of a locomotive, 
half of that which it will haul upon a level, and that an 
engine of thirty tons will haul three hundred tons of 
cargo, on the average of the year round, (as tonnage is 
presented of different proportions of bulk and weight 


H i> 


42 


and with the different conditions of the rail,) on a grade 
of 15 feet per mile. It is quite true that such engines 
often haul twice this load, but experienced railway 
men will doubtless consider the above as fair, in its 
practical application to the subject under discussion. 

It will be noticed, that in the following calculations, 
the average load of an engine of 30 tons, has been 
taken at 300 tons on a ruling grade of 15 feet per mile, 
for the mixed traffic of a railway. If, however, we are 
to consider the movement of regular fixed items of 
freight, such as grain, stock, oil, coal or lumber, the 
load of such an engine, over such grades, should be 
taken at 400 tons for an average of the condition of 
the rails, weather, and the other circumstances men- 
tioned. 

The Great Western line encounters grades of 60 
feet to the mile going westward, and those of 55 feet 
eastward. It is considered as a fair practical presen- 
tation of this question, to assume, that in regard to the 
trade moving eastward, the engines on its existing 
main line, will encounter grades of 25 feet on its west- 
ern half, and those of 55 feet on the eastern half, and 
on the suggested Glencoe “Loop,” grades going east, 
of 25 feet for the western half, and those of 35 feet for 
the eastern half. 

. The controlling grades of all, except one of the 
working divisions of the Lake Shore Railway proper, 
(to Toledo,) are 35 feet, and those of the Michigan 
Southern and Central are from 35 to 45 feet to the 
mile. 

Applying the rule before stated, to these several 
lines, it will be found that the Canada Southern will 
have the following percentages, in its favor, over the 
above mentioned lines in addition to those of distance , 


43 


357 


viz. : as against the existing line of the Great Western, 
of 66 per cent., of the Michigan Southern, of 55 per 
cent.; or, as applied to the suggested “Loop,” and 
to the Lake Shore Line, of 40 per cent. 

When we combine all of these advantages of your 
line, we find in its favor, 1st : That the saving in the 
length of miles of construction is, from 28 to 50 miles 
in length over its competitors. 2d : That the saving 
in the cost of maintaining and operating in regard to 
distance alone, will be in the same ratio. 3d : That 
the saving in maintaining and operating, effected by 
the lesser grades and more direct alignment, will be 
from 40 to 60 per cent. ; and, 4th : That by its shorter 
line, a diminished speed of trains will reach the ob- 
jective points in the same time, the saving of which 
may be taken as shown by the same ratios. That is, 
that practically, the cost of all the expenses of run- 
ning a train are nearly in the direct ratio of its speed. 

When all of the advantages over any, and all, of the 
existing and projected competing lines, are again com- 
bined, the result proves that your railway will not only 
be highly productive to its promoters, but will also 
result in great advantage to all of its connecting 
western and eastern lines. 

Both of the existing Railways which were located 
at an early day’s engineering across the Peninsula of 
Michigan, encounter heavy grades, and it would be 
difficult to avoid them without radical changes in their 
lines. The Goshen branch of the Southern Michigan, 
avoids the elevation encountered upon the main line, 
but even it is not far enough South at its western 
end, to secure the lowest grades, for the whole line, 
between Chicago and Lake Erie. The extension of 
your road over that Peninsula, is found to be not 


44 


only shorter than any of the existing lines, but also 
susceptible of grades of not exceeding 15 feet. 

There is a remarkable geographical feature of the 
country through Central New York, which must not be 
lost sight of in this discussion. The chain of moun- 
tains which extend through Virginia, Maryland and 
Pennsylvania, flatten down to the low table lands in 
western New York, and allows the vast volume of 
the water from the upper Lakes, to flow past its north- 
ern boundary to the Atlantic. Penetrating this plateau 
from the eastward, is the Mohawk River, which vir- 
tually extends the Lake Erie plateau, on nearly a 
level plane, to within a hundred miles of the Hudson. 

The elevation of Chicago is 565 feet above New York 
City ; hence, the planes connecting the two places will 
generally be in the direction of the heaviest traffic, and 
gravity becomes an important assistance to the railway 
tonnage in that direction, and therein differs from the 
lines of artificial water communication by locks, because 
upon the latter (an idea seldom thought of,) it costs as 
much to go down hill as it does to go up, much more 
than it does upon a level. 

A line of railway extending from Buffalo to the 
Hudson River, with grades which will not exceed 15 
feet, is attainable. Such a line need not diverge from 
existing or projected lines, except in particular places. 

It then appears, that a continuous line of railway 
between Chicago and New York, running over the 
Canada Southern Railway, may be made, upon which 
the maxima grades going eastward, will not exceed 15 
feet per mile. 

This whole line and alterations will be built at an 
early day, and its effect upon the through traffic will 
form an epoch in the history of Ameriean railways. 


45 


359 


It lias been previously stated that the cargo which 
an engine of thirty tons will regularly haul, upon a 
grade of 15 feet per mile, is 400 tons. 

The reported cost of running the trains, both east and 
west of your line, over the existing grades of 35 feet 
and upwards, is from one to one and a half dollars per 
mile. Engines of the same size upon your road, will 
haul twice as much as is now carried over the existing 
roads, and at a cost but little exceeding that now in- 
curred upon these lines, and when new and amended 
lines are built westward to Chicago and eastward to 
New York, on equally advantageous grades, the cost 
of transport between those points will be correspond- 
ingly reduced, upon such staple articles as grain, stock, 
oil, coal and lumber, which are constantly and regularly 
offered in large quantities for the through transport. 

If the cost of running the trains of the existing roads, 
is taken at one dollar per mile, (which would be suffi- 
cient to charge to this class of regular through business 
that requires but one handling at each end of nine 
hundred miles,) the cost of the transport of a bushel of 
grain from Chicago to New York will not exceed 22 
cents, and if the cheap water transport of the Hudson 
Biver is availed of, this price may be reduced two 
cents per bushel. 

These estimates of train expenses are based upon 
the experience of the ordinary track with iron rails. 
By using steel on the whole line between Chicago and 
New York, the rails will last five times as long as 
those of iron, and reduce the cost of the repairs of the 
track ten or fifteen per cent. The use of steel rails 
applies more particularly to the Canada Southern 
Bailway, because they will cost but little more than 
the best iron rails do in the United States. 


360 


46 


Such rates as may be reasonably expected will pay 
to the Railway Companies a respectable net revenue, 
and when to this is added the saving of insurance and 
the necessary storing and handling expenses and the 
certain delivery of the freight at the Atlantic market, 
within four days after its shipment, at all seasons of 
the year, the cost of transport by rail will be so re- 
duced, that it cannot fail to give a new impetus to the 
trade between the West and East and prove highly 
beneficial to both sections of the country. 

Respectfully submitted. 

WM. J. McALPINE, 

Consulting Engineer. 


New York, February 15 , 1871 . 


361 


EXTRACTS. 


At a meeting of the shareholders of the Great 
Western Railway Company, held in London, England, 
in July last, called to consider the question of build- 
ing of the “Loop Line ’’from Glencoe to Canfield, 
the chairman, Alderman Dakin, now Lord Mayor of 
London, in advocating this measure, said “ It must be 
obvious to those who have studied the map which has 
been sent round to the shareholders, that if the pro- 
ject called the Southern Railway there shown were 
carried out in hostile hands, it would in a very mate- 
rial degree affect the prosperity of this Company. 
When we remember that the revenue of this Company 
is dependent upon its through traffic to the extent of 
two-thirds of the whole earnings of the line, and that 
upon that traffic depends our dividend, and when we 
observe that the Southern railway, if constructed, 
will have better gradients than our own line, and bet- 
ter means of transportation to New York, we cannot 
but feel that we are liable to suffer from this project 
most materially, if not to be damaged to an extent 
which would be irreparable. Therefore the share- 
holders will see that however reluctant the board may 
be to bring before them any plan involving the ex- 
penditure of a large sum of money, yet, as that is nec- 
essary to avoid a much greater evil, and to prevent 
great damage to their interests, we should altogether 
have failed in our duty if we had omitted to bring the 
matter before you as we are now doing.” * * * 


362 


48 


“Now, this organization (the Canada Southern) de- 
pends entirely for its being successfully carried out 
upon the question whether the municipalities and 
townships through whose districts the line would pass, 
will subscribe a million and a half dollars as a bonus or 
free gift to those who promote the line; and it is upon 
the fulfillment of that condition the construction of 
the line is dependent.” * * * 

“I am prepared to state to the meeting that we have 
information, the latest advices having arrived this 
morning, that the contribution thus to be made is an 
essential condition of the construction of the line, and 
this entirely depends upon the vote which we pass 
to-day. If the Company shall see fit in consequence 
of the considerations which are placed before it, to de- 
termine to make this (Loop) line, then the Canada 
Southern line of Mr. Thomson and his supporters will 
at once fall dead to the ground. If, on the contrary, 
you imperfectly support it, or give it a hesitating or 
a qualified assent, we have reason to believe that such 
is the state of feeling in the district that the local peo- 
ple will at once proceed to vote the necessary bonuses, 
and then those gentlemen in alliance with Mr. Thom- 
son, who, so far as wealth is concerned, afford a suffi- 
cient security for their power to do what they under- 
take, will at once make this line.” * * -* 

“If we were to omit to do what we can to prevent 
that line from being made, it would be one of the 
most fatal days for the interests of the Great Western 
of Canada that could possibly arise.” * * * 

“If this line were built, it would reduce the Great 
Western, I have no hesitation in saying, very much 


363 

49 

to the condition of a local line. If it is allowed to be 
built, it will effectually cripple the through traffic upon 
which our dividend mainly depends.” * * * 

Mr. Sangster, in opposition to the construction of 
the “Loop Line,” remarked as follows : “ Everything 
that you have said tends to urge us on to make that 
line and to show that some great calamity will come 
upon us if it be not made. I am of a different 
opinion. When you stated that this new line is to 
start from Glencoe, the idea flashed across my mind 
that there was once a “massacre of Glencoe” in 
Scotland, and that if this new railway is sanctioned 
by the shareholders of this Company, there will prob- 
ably be another “ massacre of Glencoe” in Canada. 

I think there is no necessity whatever for the making 
of this new line.” * * * ’ 

“ I have no doubt that the immediate effect of the 
present proposal will be that our property will be- 
come greatly depreciated.” * * * 

“I think that if we are to lay out our money it 
would be better to lay it out on our present line ; 
supposing that it would cost the same amount, we 
shall in that case still have the same servants and the 
same stations, and our traffic would no doubt increase. 

The new line which is proposed, would decrease 
by so much the traffic on the existing line ; we should 
have robbed Peter to pay Paul by taking the money 
out of one pocket to put it into the other. I caution 
the shareholders of this Company, and I caution 
you, to beware of what is now contemplated.” 


Season Average of Lake Freights on Wheat and Corn From Chicago to Buffalo and Chicago to Oswego : also Canal 
Freight on Wheat and Corn from Buffalo to New York and from Oswego to New York, from 1857 to 1870, 
inclusive, and the aggregate Cost in each year by each route : 


50 


3 6 4 


CHICAGO to NEW YORK 
via OSWEGO. 

Lake , Canal , River. 

*3 

1 

a> 

Pi 

psl 

g 

d 

i i i i i i i i i i i i t i 

T)i(?U>HCOOOait--OiCCCOCMOO^I 

1 1 1 1 I 1 1 1 1 1 1 1 < 1 

21-3-6 

-"S 

-do 2 ” 

w 3:12 

m ® 

£ 

<D 

Ph 

d 

s 

d 

Oh--(>}^rHaOC^COCO<>liOt--CO'?H 

I>rHdGOlO(^d^(^dCOOOH^ 

1 1 1 1 1 1 1 1 1 1 1 1 1 1 
^COb*THdd<yiOOt>0<N(MiXlOO 

23-8-0 

CHICAGO to NEW YORK 
via BUFFALO, 

Lake, Canal, River. 

'3 

-rP • 

>5 05 02 
« 

& , O 
<P 
ft 

C. M. F. 

lOdOOiONd^OiO^^dCOGO 

t^^^COCDCO^rHCDGOrllOrHt^ 

CO 

1 

t- 

1 

O 

CM 

Wheat, 
per bushel, 
601bs. 

d 

s 

d 

OlOCOtOiOCOHd^HCDOJlMO 

<^(^E:cOiCCOOO*)^)^DCOb*HH 

OON^d)CO(^OOd)C5(^(^COt> 
CM H H (M (M CM (M (M Ol cq Ol d (M H 

CO 

cjl 

CO 

CM 

OSWEGO to NEW YORK- 

Canal and River. 

t-f" 

<D 

Safa ® 

OP® 

O 3a 

p 

9 

Pi 

C. M. F. 

iCOdTFOCOL-CMOiO^b-OO 

OiiO(MdHOWdO(Mb-dCOd 

. i i i ■ ■ i i i i i i i 

b*b*05fl5005fl5Hn00505 0b* 
l—l H H H rH 

9-5-5 | 

Jo 

*6* 

pi 

C. M. F. 

OiCOtMt-HiOClOJ HOJOO(MHOi 

i i i i i i i i i i i i i 

db-t-hHOGOOCOd^dOOH 

iii • i i i i i i i i i i 

O GO O O rH rH O CO (Mi rH l-H rH i— 1 OO 
rH i—l rH rH rH rH t—I rH rH rH y—* rH 

11-0 5 

CHICAGO to OSWEGO. 

Lake. 

Corn, 

per bushel, 
561b s. 

d 

S’ 

d 

CDOdddlHOiOON(M(M0005(M 

■ i i i i i i i i i i ■ i i 

CMCDCCM^^O^COb-oOOOi 
tH rH rH rH rH rH i— 1 rH rH rH 

11-8-1 

Wheat, 
per bushel, 
601bs. 

C. M. F. 

iCiOWOt-(M^b-(MCOb-iOCliO 

O^OOdfMtHCOOsOiOOdCOtMI 

1 1 1 1 1 1 1 1 1 1 1 1 1 1 
^t^-t^-r^iOOrHOrHOOOrHr-lO 
rH rH rH r-i rH i-H rH rH rH rH i— 1 rH 

12-7-5 

BUFFALO to NEW YORK 

Canal and River. 

1 Corn, 

iper bushel, 

561b s. 

d 

s 

d 

^b-OOCOCCdaiOlHCMCMHCOlO 

HO^H^riHlHCCOCD'+COOOOCO 

(MOHCOrFCOCOd^riiWCOCOO 

rH rH rH rH rH rH rH rH rH rH rH rH — i rH 

13-2-5 

Wheat, 
per bushel, 
60 lbs. 

d 

S 

d 

OkMOtFiOtHOiOO^IhOIiOHCM 

i i i i i i ■ i i i i i i i 

COOOOOit'-OOCOt-OOCMddCOCM 

^OCMOIrtHOiOiOGO ~ 1^- uO O CO r^i 

-H rH rH rH t— 1 i— 1 t-H rH i— 1 rH rH rH rH i—t 

14-9-5 

CHICAGO to BUFFALO. 

Lake. 

Corn, 

per bushel, 
561b s. 

g 

d 

HiOOtMCDOd^tHHCOWlHCO 

d<MdOiGOiCOi64^0(MH 

i i i i i i i i ■ i • i i 

OOCO^OOOOiCOOOOJniOCDdiO 

rH rH 

7-4-8 

Wheat, 
per bushel. , 
60 lbs. 

C. M. F. 

OidGOOiCOCli-iOOOOTiHt-rFIHGiO 
GO £■— O QO lO rJH lO O t-* CO 'CO t-H GO GO 

• i i ■ i i i i i i i i i i 

OiCOiGOlHOb-OiOiCMdb-diO 
rH rH rH 

8-3-1 


YEARS. 

1 1 1 1 1 1 1 1 1 1 1 1 1 1 

1 1 1 1 1 1 1 1 1 1 1 1 1 1 

1 1 1 1 1 1 1 1 1 1 1 1 1 1 

1 1 1 f t 1 1 1 t 1 1 1 I 1 

1 1 1 1 1 1 1 1 1 1 1 1 1 I 

1 1 1 1 1 i J 1 1 1 t 1 1 1 

1 1 « 1 1 1 1 | t (ft* * * * 

N»aOHfflCOTHvO‘ , £)f-ooaO 

QO OO GO GO QO QC GO OC 00 00 QO GO 00 00 

HHHHHHrirHHHHHHH 

Ay. 14 years 


The storage and transfer charges at Chicago are 2c. per bushel ; average lake insurance 
H c. per bushel; Buffalo transfer charges He. per bushel, Buffalo shovelling and trimming 
charges on vessels and canal boats he. per bushel, making an aggregate additional charge to 
be added to the average freight of full five cents per bushel ; which transfer charges should 


51 


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525 









FIRST MORTGAGE 7 PER CENT. 


$ 1,000 


principal §agabk <ffattg 1st, IB OB, 

AT THE 

Union Trust Company of low York, 

CUf OF SSW TOBK, 


JJ. jS. A 


Condition. 


This Bond is subject to be redeemed at par in pur- 
suance of the Mortgage , as follows : A sinking fund 
will be established by the Company by paying into the 
same , on or before the several days specified below , the 
several sums below stated opposite such daps respectively , 
and the like amount of bonds will be redeemed out of 
said sinking fund upon each of said days respectively. 
The particular bonds so to be redeemed in each case will 
be determined by lot in pursuance of the mortgage , and 
the result of the lot in each case will be published in New 
York and London , England , by advertisement in a daily 
newspaper of each of said cities , at least thirty days be- 
fore the time of redemption ; from which time interest 
on the bonds designated shall cease to accrue , namely : 

TIME OF REDEMPTION. AMT. OF BONDS TO BE REDEEMED. 


January 1, 1875. 

$ 82,000. 

January 1, 1876. 

87,000. 

January 1, 1877. 

93,000. 

January 1, 1878. 

100,000. 

January 1, 1879. 

107,000. 

January 1, 1880. 

114,000. 

January 1, 1881. 

122,000. 

January 1, 1882. 

131,000. 

January 1, 1883. 

140,000. 

January 1, 1884. 

150,000. 

January 1, 1885. 

160,000. 

January 1, 1886. 

172,000. 

January 1, 1887. 

184,000. 

January 1, 1888. 

196,000. 

January 1, 1889. 

210,000. 

January 1, 1890. 

225,000. 

January 1, 1891. 

241,000. 

January 1, 1892. 

257,000. 

January 1, 1893. 

275,000. 

January 1, 1894. 

295,000. 

January 1, 1895. 

315,000. 

January 1, 1896. 

337,000. 

January 1, 1897. 

361,000. 

January 1, 1898. 

386,000. 

January 1, 1899. 

413,000. 

January 1, 1900. 

442,000. 

January 1, 1901. 

473,000. 

January 1, 1902. 

506,000. 

January 1, 1903. 

542,000. 

January 1, 1904. 

580,000. 

January 1, 1905. 

620,000. 

January 1, 1906. 

684,000. 

$9,000,000. 


No. 


367 



; 


FIRST MORTGAGE 7 PER CENT. 

# 1,000 


principal §amibh $ang 1st, WO 0, 

AT THE 

Union Trust Company of lew York, 

C1W OF »®W TASK, 

5?- A a 


Condition. 

This Bond is subject to be redeemed at par in pur- 
suance of the Mortgage , as follows : A sinking fund 
will be established by the Company by paying into the 
same , on or. before the several days specified below , the 
several sums below stated opposite such days respectively , 
and the like amount of bonds will be redeemed out of 
said sinking fund upon each of said days respectively. 
The particular bonds so to be redeemed in each case will 
be determined by lot in pursuance of the mortgage , and 
the result of the lot in each case will be published in New 
York and London , England , by advertisement in a daily 
newspaper of each of said cities , at least thirty days be- 
fore the time of redemption / from which time interest 
on the bonds designated shall cease to accrue , namely : 

TIME OF REDEMPTION. AMT. OF BONDS TO BE REDEEMED. 


January 1, 1875. 

$ 82,000. 

January 1, 1876. 

87,000. 

January 1, 1877. 

93,000. 

January 1, 1878. 

100,000. 

January 1, 1879. 

107,000. 

January 1, 1880. 

114,000. 

January 1, 1881. 

122,000. 

January 1, 1882. 

331,000. 

January 1, 1883. 

140,000. 

January 1, 1884. 

150,000. 

January 1, 1885. 

160,000. 

January 1, 1886. 

172,000. 

January 1, 1887. 

184,000. 

January 1, 1888. 

196,000. 

January 1, 1889. 

210,000. 

January 1, 1890. 

225,000. 

January 1, 1891. 

241,000. 

January 1, 1892. 

257,000. 

January 1, 1893. 

275,000. 

January 1, 1894. 

295,000. 

January 1, 1895. 

315,000. 

January 1, 1896. 

337,000. 

January 1, 1897. 

361,000. 

January 1, 1898. 

386,000. 

January 1, 1899. 

413,000. 

. January 1, 1900. 

442,000. 

January 1, 1901. 

473,000. 

January 1, 1902. 

506,000. 

January 1, 1903. 

542,000. 

January 1, 1904. 

580,000. 

January 1, 1905. 

620,000. 

January 1, 1906. 

684,000. 

$9,000,000. 


MORTGAGE. 


This Indenture, made this fifteenth day of December in the 
year of our Lord One thousand eight hundred and seventy, 
between the Canada Southern Railway Company, a body 
politic and corporate, duly incorporated by the Legislature of 
the Province of Ontario, in the Dominion of Canada, of the 
first part, and William Lawrence Scott, of the City of Erie, 
State of Pennsylvania, Banker, and Kenyon Cox, of the City 
and State of New York, United States of America, Banker, 
Trustees as liein after mentioned, of the second part : 

Whereas, The Canada Southern Railway Company, under 
the powers conferred by the several statutes relating thereto, 
have commenced and are engaged in the construction of their 
line of Railway in the Province of Ontario, which, by the said 
statutes, they are duly authorized to construct from a point 
in the Township of Bertie, near the Tillage of Fort Erie, 
passing through the Town of St. Thomas, to some point in the 
County of Essex, in or near the Town of Sandwich, or the 
Town of Windsor, and also to some point in or near the Town 
of Amherstburg in the same County, and also to a point on 
the River St. Clair, in the Township of Moore, in the County 
of Lambton ; and whereas, to enable the said Company more 
readily to complete its said undertaking, the said Company 
hath resolved to borrow under the provisions of the Railway 
Act and to issue Bonds for an amount not to exceed in the 
aggregate the sum of Nine milllions of dollars, nor more than 
Thirty thousand dollars per mile of Railway to be constructed, 
and to secure the payment of the said Bonds, with interest, by 
the Mortgage, pledge and hypothecation of the said Railway, 
its lands, tolls, revenues, present and future property and 
effects, franchises and appurtenances ; 


54 : 


3'fty 


And Whereas, the said Bonds, so to be issued by the said 
Company, are to be certified by the countersigning thereof by 
the parties of the second part, or the Trustees for the time 
being of these presents, and such countersigning shall be evi- 
dence that such Bonds are of the issue intended to be secured 
by this Mortgage, and are to be of the nature and effect follow- 
ing, that is to say : First, registered Bonds of the denomina- 
tion of one thousand dollars, transferable only on the register 
of the Company, and, Secondly, Bonds with Coupons attached, 
payable to John F. Tracy, or bearer, of the denomination of 
one thousand dollars. Each class of Bonds to be payable in 
lawful money of the Dominion of Canada, in the said City of 
New York, on the first day of January, in the year one thousand 
nine hundred and six, with interest in the meantime at the rate 
of seven per centum per annum, payable in like lawful money of 
the Dominion of Canada, half-yearly, in the said City of New 
York, on the first days of January and July in each year; 
with a provision that at any time all or any part of the said 
Bonds, at the option of the holder, will be made Sterling 
Bonds, payable in Sterling Money of Great Britain, in Lon- 
don, England, or in the City of New York, at the rate of two 
hundred pounds Sterling for every bond, and seven pounds 
Sterling for each half-year’s interest or coupon ; and such 
Sterling Bonds shall carry all privileges of conversion or 
otherwise as fully as the Bonds originally issued, or intended 
to be issued, under these presents ; 

And Whereas, the said Bailway Company hath agreed to 
execute these presents as‘ and for a first mortgage to secure 
the said issue of the Bonds aforesaid, being strictly limited 
to the sum of Nine millions of dollars in the aggregate, and 
the said sum of Thirty thousand dollars per mile of railway 
to be constructed ; 

Now therefore, these presents witness that for the pur- 
pose of securing the payment of the said Bonds, being in all 
the said sum of Nine millions of dollars, limited as aforesaid, 
with interest as aforesaid, and for the further consideration of 
one dollar in hand paid by the parties of the second part to the 


55 


3 70 


party of the first part, the receipt whereof is hereby acknowledg- 
ed, the party of the first part hath granted, bargained and sold, 
and by these presents doth grant, bargain and sell unto the said 
parties of the second part, their heirs and assigns, and to their 
successors in the trust, all the following, present and future to be 
acquired estate and property of the said Company; that is to say, 
their Railway and undertaking made, in course of construction, 
and to be made between its terminus in the township of Bertie, 
near the village of Fort Erie aforesaid, to its respective termini, 
at or near the towns of Sandwich, Windsor, and Amherstburg, 
aforesaid ; and also to its terminus on the St. Clair River, in 
the township of Moore, aforesaid ; and being situate in the 
following counties, that is to say : Welland, Haldimand, Ox- 
ford, Norfolk, Elgin, Kent, Essex, Middlesex and Lambton, 
all in the Province of Ontario, and Dominion of Canada ; in- 
cluding the right of way, and the land occupied thereby; to, 
gether with the superstructure and tracks thereon, or to be 
thereon ; and all iron rails, ties and other materials placed or to 
be placed or used thereon, procured or to be procured therefor, 
and all bridges, viaducts, culverts, fences, stations, station 
grounds, buildings and erections thereon, and all machine 
shops and other shops held or acquired for use, in connection 
with said Railway or the business thereof ; and including also 
all locomotives, tenders, cars and other rolling stock or equip- 
ment; and all machinery, tools, implements, fuel and materi- 
als for the constructing, operating, repairing or replacing the 
said Rail way or any part thereof, or any of its equipments or 
appurtenances ; whether now held or at any time hereafter 
acquired, all of which things are hereby declared to be appur 
tenances and fixtures of the said Railway, and to be included 
in and to pass by these presents ; and also all franchises con- 
nected with or relating to the said Railway, or the construc- 
tion, maintenance or use thereof, now held or hereafter 
acquired by the said party of the first part, and all corporate 
and other franchises which are now or may be hereafter 
possessed or exercised by the said party of the first part ; to- 
gether with alb and singular the tenements, hereditaments and 
appurtenances thereunto belonging, or in anywise appertaining, 
and the reversions, remainders, tolls, incomes, rents, issues 


371 


56 


and profits thereof, and all the estate, right, title, interest, 
property, possession, claim and demand whatsoever, as well in 
law as in equity, of the said party of the first part of, in and 
to the same, and any and every part thereof with the appur- 
tenances. To have and to hold the said premises and every 
part thereof until the said parties of the second part, as joint 
tenants and not as tenants in common, and the survivor of 
them, and to the heirs and assigns of such survivors, and to 
their successors in the trust, to the only proper use and behoof 
of the said parties of the second part, and of the survivor of 
them, and of the heirs and assigns of such survivor, and to 
their successors in the trust ; but nevertheless upon the trusts, 
and for the purposes herein expressed, that is to say : 

First . — Until default shall be made in the payment of prin- 
cipal or interest of the said Bonds or some of them, or until 
default shall be made in respect to something herein required 
to be done or kept by the Canada Southern Bailway Com- 
pany, the said Bailway Company shall be suffered and per- 
mitted to possess, operate, manage and enjoy the said Bailway 
with its equipments and appurtenances, and to take and use 
the rents, incomes, profits, tolls and issues thereof, in the same 
manner and with the same effect as if this deed had not been 
executed. 

Second . — In case default shall be made in the payment of 
any interest on any of the aforesaid Bonds issued, or to be 
issued, according to the tenor thereof, or in any requirement to 
be done or kept by the Canada Southern Bailway Company, 
and if such default shall continue for the period of six months, 
it shall be lawful for the said trustees or the survivor of them 
or their or his successors, personally or by their or his attor- 
neys or agents, to enter into and upon all and singular the 
premises hereby conveyed, or intended so be, and each and 
every part thereof, and to have, hold and use the same, ope- 
rating, by their or his superintendents, managers, receivers or 
servants, or other attorneys or agents, the said Bailway and 
conducting the business thereof, and making from time to 
time, all repairs and replacements, and such useful alterations, 


57 


372 


additions, and improvements thereto, as may seem to them 
or him to be judicious, and to collect and receive all tolls, 
freights, incomes, rents, issues and profits of the same and of 
every part thereof, and after deducting the expenses of ope- 
rating the said Railway and conducting its business and 
all of the said repairs, replacements, alterations, additions, and 
improvements, and all payments 'which may be made for 
taxes or assessments, prior to the lien of these presents, upon 
the same premises or any part thereof, as well as a just com- 
pensation for their or his own services, to apply the moneys 
arising as aforesaid to the payment of interest in the order in 
which such interest shall have become due or si i all become 
due, ratably to the persons entitled thereto ; and after pay- 
ing all interest which shall have become due, to apply the 
same to the satisfaction of the principal of the aforesaid Bonds, 
which may be at that time due and payable, ratably and 
without discrimination or preference ; and after the said in- 
terest and principal so in default shall have been fully paid, 
then the said trustees shall restore the possession of the Rail- 
way with its franchises and appurtenances to the said Railway 
Company and its successors. 

Third . — The Canada Southern Railway Company shall, 
from time to time and at all times hereafter, and as often as 
thereunto requested by the Trustees, execute, acknowledge 
and deliver all such further deeds, conveyances and assu- 
rances in the law for the better assuring unto the Trustees and 
their successors in the trust hereby created upon the trusts 
herein expressed, the said Railway, with the equipment and 
appurtenances hereinbefore mentioned or intended so to be, 
and all other property and effects whatsoever which may at 
any time hereafter be acquired for use in connection with the 
said railway or any part thereof, and all franchises now held 
or hereafter acquired, as by the Trustees or the survivor of 
them or their successors, or by their or his counsel learned in 
the law, shall be reasonably advised, devised or required. 

Fourth . — The Board of Directors of The Canada Southern 
Railway Company may, from time to time, by resolution, re- 


quire the said Trustees to convey, by way of release or other- 
wise, to discharge from the operation of these presents, any 
lands acquired or held for the purposes of stations, depots, 
shops, or other buildings or premises connected therewith,. or 
which may be held for the supply of fuel, gravel, or other 
material, or any lands which may have become disused by 
reason of a deviation in the said line, or of a change of the 
location of any station house, depot, shop or other building or 
premises, or any lands which the said Board of Directors may 
deem it expedient to disuse or abandon, by reason of such 
deviation or change ; and which lands respectively shall, 
by resolution of the said Board, be declared to be unnecessary 
for the purposes and business of the said Company ; and 
in every such case the said Trustees, when so required, 
shall execute such releases and discharges accordingly ; 
and it is hereby declared that any lands which may be ac- 
quired in substitution for lands so released or discharged, as 
well as any lands subsequently acquired by the said Company 
for the use or convenience of its Bailway, or in connection 
therewith, shall be deemed to come within the operation of 
these presents, and to be included therein, and shall be con- 
veyed to and held by the said Trustees, upon the trusts of 
these presents; and it is further declared, that the said Com- 
pany may, from time to time, sell or dispose of any part of 
the equipment, rolling stock, machinery, implements or ma- 
terials at any time held or acquired for the use or purposes 
of said Bailway, as may, by resolution of the Board of 
Directors, be declared to be no longer useful or necessary for 
the said Company’s business, and any new or subsequently 
acquired equipment, rolling stock, machinery, implements 
and materials, shall come within and be subject to these 
presents. 

Fifth . — If the said Canada Southern Bail way Company 
shall well and truly pay the sums of money required to be 
paid by the said Company, and all interest thereon according 
to the tenor and effect of said Bonds, and shall well and truly 
keep and perform all things herein required to be kept or 
performed by the said Company, according to the true intent 


59 


37 


and meaning of these presents, or if the said Bonds and in- 
terest payable thereon become in anywise paid and satisfied, 
then in that case the estate, right, title and interest of the 
said parties of the second part, and of their successors in the 
trust hereby created, shall cease, determine, and become void, 
otherwise the same shall be and remain in full force and 
virtue. 

Sixth . — It is mutually agreed by and between the parties 
hereto that the word Trustees as used in these presents shall 
be construed to mean the Trustees for the time being, whether 
one or both be original or new, and whenever a vacancy shall 
exist to mean the survivor or continuing Trustee, and such 
Trustee shall, during such vacancy, be competent to exercise all 
the powers granted by these presents to the parties of the 
second part ; and it is mutually agreed, by and between the 
parties hereto, as a condition on which the parties of the 
second part have assented to these presents, that the said 
Trustees shall not in any manner be responsible for any de- 
fault or misconduct of each other; and that the said Trus- 
tees shall be entitled to just compensation for all services 
which they may hereafter render in their trust, to be paid by 
the said Company ; and that either of the said Trustees or 
any successor may resign and discharge himself of the trust 
created by these presents by notice in writing to the said Can- 
ada Southern Railway Company, and to the existing Trustee, 
if there be such, ninety days before such resignation shall 
take effect, or such shorter notice as they may accept as ade- 
quate notice and upon the due execution by him of the con- 
veyances- hereinafter required; and that the said Trustees or 
either of them may be removed by the vote of a majority 
in interest of the holders of the aforesaid Bonds then out- 
standing, the said vote being had at a meeting called by the 
holders of at least Five hundred thousand dollars of said 
Bonds, by advertisement published for six consecutive weeks, 
by insertion once per week in a daily newspaper of large cir- 
culation in the cities of New York and Toronto, respectively, 
and at said meeting said bondholders may vote in person or 
by proxy, and their said vote shall be attested by an instru- 


60 


•> f>' 
f> Si 


ment under the hands and seals of the persons or their prox- 
ies so voting ; and that in case at any time hereafter either 
of the said Trustees or any Trustee hereafter appointed, shall 
die or resign or be removed as herein provided, or by a 
Court of competent jurisdiction, or shall become incapable or 
unfit to act in the said trust, a successor to such Trustee shall be 
appointed by the Board of Directors of the said Railway 
Company, with the consent of the holders for the time being 
of a majority in interest of the said Bonds, evidenced by any 
writing to that effect from them respectively, or with the 
consent of a meeting duly held of the said bondholders, called 
after advertisement in that behalf, published for the time and 
in the manner hereinbefore mentioned, and the Trustee or 
Trustees so appointed, with any Trustee so surviving or con- 
tinuing, shall thereupon become vested with all the powers, 
authorities and estates granted to or conferred upon the par- 
ties of the second part by these presents, and all the rights 
and interests requisite to enable him to execute the purposes 
of this trust without any further assurance or conveyance so 
far as such effect may be lawful ; but the surviving or con- 
tinuing Trustee shall immediately execute all such convey- 
ances or other instruments as may be fit or expedient for the 
purpose of assuring the legal estate in the premises jointly 
with himself to the Trustee so appointed ; and that upon the 
death, resignation or removal of any Trustee, or any appoint- 
ment in his place in pursuance of these presents, all his 
powers and authorities by virtue hereof shall cease, and all 
the estate, right, title and interest in the said premises of any 
Trustee so dying, resigning, or being removed, shall, if there 
be a co-Trustee surviving or continuing in office, wholly cease 
and determine, but the said Trustee so resigning or being 
removed shall, on the written request of the new Trustee who 
may be appointed, immediately execute a deed or deeds of 
conveyance to vest in such new Trustee jointly with the con- 
tinuing Trustee, and upon the trusts herein expressed, all the 
property, rights and franchises which may be at that time 
held upon the said trusts. Or in case it shall hereafter at 
any time prove impracticable, after reasonable exertions to 
appoint in the manner hereinbefore provided, a successor in 


> 


61 



any vacancy which may have happened in said trust, or in 
case the trust shall become wholly vacant, application on be- 
half of all the holders of the Bonds secured hereby may be 
made by the surviving or continuing Trustee, or if the trust 
be wholly vacant, by the application of the holders of the 
said Bonds to the aggregate amount of One hundred thousand 
dollars, to the Court of Chancery in the Province of Ontario, 
for the appointment of a new Trustee, or new Trustees. 

Seventh . — It is hereby declared and agreed that any of the 
Coupon Bonds, the issue whereof is by these presents secured, 
may at the option of the holder thereof be converted into or 
exchanged for a like amount of Registered Bonds, the issue 
whereof is hereby secured ; And it is also further agreed, 
that the holders of the Registered Bonds secured by these 
presents may from time to time transfer the same on the 
books of the Company, and that new Registered Bonds may 
be issued in the place and stead of those surrendered for can- 
celment on such transfer, and that this mortgage shall enure 
to the benefit and security of the holders of such new sub- 
stituted Bonds, which may be issued on such transfer and 
cancelment. And said Board of Directors in its discretion, 
at any time and from time to time, may allow the conversion 
or re-conversion of Registered Bonds into Coupon Bonds, by 
surrender and exchange, at the request of the holders of such 
Registered Bonds, and such substituted Bonds shall be secured 
by these presents in like manner as the Registered Bonds so 
surrendered. 

Eighth . — And it is hereby further declared and agreed 
that at any time all or any part of the said Bonds whether 
registered or coupon, at the option of the holder thereof, 
shall be made by said Compaay Sterling Bonds, payable in 
Sterling money of Great Britain, at the rate of Two hundred 
pounds Sterling for each Bond, and seven pounds Sterling for 
each half-year’s interest or coupon; and such Sterling Bonds 
shall be made payable in London, England, or in the City of 
New York, as such holder shall then elect; and such Sterling 
Bonds shall be held to be secured by these presents, and issued 


37 7 


62 




thereunder, and to carry and to be entitled to all privileges 
of conversion or otherwise, as fully as the original Bonds issued, 
or intended to be issued, payable in lawful money of the 
Dominion of Canada. And the said Company may, by 
resolution of the Board of Directors, from time to time, es- 
tablish offices in New York and London respectively for the 
transfer of registered Bonds, and for converting Bonds into 
Sterling Bonds as above. 

Ninth . — And the said Canada Southern Railway Company 
hereby covenants and agrees to and with the said parties of 
the second part, and their successors and survivor, for the 
benefit and in trust for the holders of all the said Bonds, that 
said Company shall establish a Sinking Fund adequate for 
the redemption at par of all the said Bonds, at or before the 
maturity thereof ; and that said sinking fund shall be pre- 
served and used for such redemption, and for no other use or 
purpose; and that said Company will pay into said sinking 
fund, on or before the first day of January, One thousand 
eight hundred and seventy-five, the sum of Eighty-two thou- 
sand dollars, and thereafter will pay into said sinking fund 
on the first day of January of each succeeding year the sev- 
eral sum herein written after such year, that is to say, in 
the year 1876, $87,000 ; in 1877, $93,000 ; in 1878, $100*000 ; 
in 1879, $107,000; in 1880. $114,000; in 1881, $122,000; 

in 1882, $131,000; in 1883, $140,000; in 1884, $150,000; 

in 1885, $160,000; in 1886, $172,000; in 1887, $184,000; 

in 1888, $196,000; in 1889, $210,000; in 1890, $225,000; 

in 1891, $241,000; in 1892, $257,000; in 1893, $275,000 ; 

in 1894, $295,000; in 1895, $315,000; in 1896, $337,000; 

in 1897, $361,000; in 1898, $386,000; in 1899, $413,000; 

in 1900, $442,000; in 1901, $473,000; in 1902, $506,000; 

in 1903, $542,000; in 1904, $580,000; in 1905, $620,000; 

in 1906, $684,000; and that on the first day of January, in 

the year One thousand eight hundred and seventy-five, and 
yearly thereafter, said Company shall pay and apply out of 
said sinking fund, the several sum so then respectively ap- 
propriated as above, for said sinking fund, to the payment 
and redemption of said Bonds to the like amount at par ; that 


63 


the particular Bonds so to be redeemed shall be deter 
in every case by lot, cast or drawn at some time in the m 
of November next previous to such redemption, by some 
interested person or persons appointed by the Compaq 
and the result of such lot, designating and specifying the par 
ticular Bonds to be redeemed, shall be published in the cities 
of New York, and London, England, by advertisement in a 
daily newspaper of each of said cities at least thirty days be- 
fore the day of redemption ; and that all Bonds so redeemed 
and all coupons thereof, shall be canceled by the Company 
in the presence of the Trustees, who shall keep a list thereof. 
No interest shall accrue on any Bond so designated for re- 
demption, after it thereby has become payable, and the Com- 
pany shall be ready to pay the same. 

In witness whereof, And in pursuance of a resolution of its 
Board of Directors, passed on the fifteenth day of December, 
One thousand eight hundred and seventy, the party of the 
first part has caused its corporate seal to be affixed to these 
presents, at Fort Erie, in the Province of Ontario, Dominion 
of Canada, and the same to be attested by the signatures of 
its President and Secretary, and the said parties of the second 
part have hereunto set their respective hands and seals to 
testify their acceptance of the said trust, the day and year 
first above written ; and these presents are executed in nine 
parts for the purpose of registration in the several counties 
above mentioned. 



President. 


Secretary. 

Trustees. 












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